Pension sharing order

Delli48

Can anyone advise if it’s possible to cash in a pension sharing order I acquired during my divorce?

Marcon

If you've transferred your share to a defined contribution scheme, and have reached the age of 55, you can normally take the lot as cash - but remember that you'll be taxed on 75% of whatever you take and tax will be at your marginal rate. That rate could be much higher than basic rate depending on how much your share was and what other potentially taxable income you have in the tax year in which you encash the pension. Spreading any withdrawal over more than one tax year, if that's an option for you, might help to mitigate the tax position, again depending on what income you have in the tax year(s). You also need to keep in mind that if you take anything in excess of the 25% tax free you will only be able to contribute £4,000 maximum (including tax relief/any employer contributions) per year, so you are limiting your ability to build up a decent 'pot', if that's what you hope to do.

DullGreyGuy

Normal cashing in rules apply. 

If you dont want the pension are there sufficient assets/funds for them to settle cash and they keep their full pension? Ultimately these things are a negotiation but at a previous client only 10% of PSO's actually resulted in an order to be issued... guessing that 90% of divorces aren't cancelled when they see how much of their pension pot they'll lose then the reality is many people decided to settle cash and keep their full pension.